WGU D101 Cost and Managerial Accounting 2026 | Latest
Update | Questions & Answers | Graded A+
1. What advantage does a company gain by having accurate job cost
information?
It can pay higher wages to employees.
It can set prices that guarantee making a profit.
It can reduce the number of employees.
It can increase production speed.
2. Describe the role of the work-in-process inventory account in the
manufacturing process.
The work-in-process inventory account is used to record the sale of
finished products.
The work-in-process inventory account tracks the costs of raw
materials, direct labor, and overhead incurred during production
until the product is completed.
The work-in-process inventory account only includes the costs of
direct materials used in production.
The work-in-process inventory account is irrelevant to the
manufacturing process.
3. Which is true when manufacturing overhead is overapplied?
Applied overhead is lesser than actual overhead.
There is a debit in the manufacturing overhead control.
Too much manufacturing overhead has been added to product
costs.
, Cost of goods sold is negative.
4. What are the three main types of costs assigned to products in a job order
costing system?
Direct labor, manufacturing overhead, and administrative expenses
Manufacturing overhead, administrative expenses, and depreciation
of office buildings
Direct materials, direct labor, and administrative expenses
Direct materials, direct labor, and manufacturing overhead
5. A manufacturing company budgeted for $1,240,000 in manufacturing
overhead and expected 400,000 direct labor hours. Actual overhead was
$1,200,000, and actual direct labor hours were 390,000. Was manufacturing
overhead over- or under-applied and by how much?
Over-applied by $9,000
Under-applied by $9,000
Over-applied by $40,000
Under-applied by $40,000
6. If the manufacturing overhead account had debits of $30,000 and credits of
$35,000, what would be the status of manufacturing overhead?
Manufacturing overhead is underapplied by $5,000.
Manufacturing overhead is overapplied by $30,000.
Manufacturing overhead is exactly applied.
Manufacturing overhead is overapplied by $5,000.
,7. If a company incurs $50,000 in actual manufacturing overhead costs during
the year, how should this be recorded in the accounting system?
Debited to the manufacturing overhead account
Debited to the finished goods account
Credited to the work-in-process account
Credited to the manufacturing overhead account
8. Which of the following are manufacturing costs?
Direct Labor, Direct Materials, Administrative costs
Direct Materials, Direct Labor, Manufacturing Overhead and Selling
Costs
Direct Materials, Direct Labor, Advertising costs
Direct Materials, Direct Labor, Manufacturing Overhead
Manufacturing Overhead, Direct Labor, Advertising costs
9. Describe the role of a price maker in a market and how it differs from a price
taker.
A price maker operates in a competitive market, while a price taker
operates in a monopoly.
A price maker is always a larger firm than a price taker.
A price maker can influence the market price through its production
decisions, while a price taker must accept the prevailing market
price.
A price maker only sells at a fixed price, whereas a price taker can
negotiate prices.
, 10. Assume a production process using process costing starts with a certain
number of units in beginning inventory that are partially completed, a certain
number of units are started and completed during the period, and the
ending inventory at the end of the period is partially complete. How would
you determine the equivalent units of production in this situation for the
period?
You would add the work required to complete the units in beginning
inventory plus the degree of completion of the ending inventory
units.
You would add the work required to complete the units in beginning
inventory plus the number of units started and completed during the
period.
You would add the work required to complete the units in
beginning inventory to the number of units started and completed
during the period to the degree of completion of the ending
inventory units.
You would add the work required to start and complete the units
started during the period plus the degree of completion of the
ending inventory units.
11. Which of the following organizations would most likely use a process costing
system?
airplane manufacturer
automobile retailer
public accounting firm
gasoline refinery
12. If a company purchases $5,000 worth of raw materials on open account,
what would be the journal entry to reflect this transaction?
Update | Questions & Answers | Graded A+
1. What advantage does a company gain by having accurate job cost
information?
It can pay higher wages to employees.
It can set prices that guarantee making a profit.
It can reduce the number of employees.
It can increase production speed.
2. Describe the role of the work-in-process inventory account in the
manufacturing process.
The work-in-process inventory account is used to record the sale of
finished products.
The work-in-process inventory account tracks the costs of raw
materials, direct labor, and overhead incurred during production
until the product is completed.
The work-in-process inventory account only includes the costs of
direct materials used in production.
The work-in-process inventory account is irrelevant to the
manufacturing process.
3. Which is true when manufacturing overhead is overapplied?
Applied overhead is lesser than actual overhead.
There is a debit in the manufacturing overhead control.
Too much manufacturing overhead has been added to product
costs.
, Cost of goods sold is negative.
4. What are the three main types of costs assigned to products in a job order
costing system?
Direct labor, manufacturing overhead, and administrative expenses
Manufacturing overhead, administrative expenses, and depreciation
of office buildings
Direct materials, direct labor, and administrative expenses
Direct materials, direct labor, and manufacturing overhead
5. A manufacturing company budgeted for $1,240,000 in manufacturing
overhead and expected 400,000 direct labor hours. Actual overhead was
$1,200,000, and actual direct labor hours were 390,000. Was manufacturing
overhead over- or under-applied and by how much?
Over-applied by $9,000
Under-applied by $9,000
Over-applied by $40,000
Under-applied by $40,000
6. If the manufacturing overhead account had debits of $30,000 and credits of
$35,000, what would be the status of manufacturing overhead?
Manufacturing overhead is underapplied by $5,000.
Manufacturing overhead is overapplied by $30,000.
Manufacturing overhead is exactly applied.
Manufacturing overhead is overapplied by $5,000.
,7. If a company incurs $50,000 in actual manufacturing overhead costs during
the year, how should this be recorded in the accounting system?
Debited to the manufacturing overhead account
Debited to the finished goods account
Credited to the work-in-process account
Credited to the manufacturing overhead account
8. Which of the following are manufacturing costs?
Direct Labor, Direct Materials, Administrative costs
Direct Materials, Direct Labor, Manufacturing Overhead and Selling
Costs
Direct Materials, Direct Labor, Advertising costs
Direct Materials, Direct Labor, Manufacturing Overhead
Manufacturing Overhead, Direct Labor, Advertising costs
9. Describe the role of a price maker in a market and how it differs from a price
taker.
A price maker operates in a competitive market, while a price taker
operates in a monopoly.
A price maker is always a larger firm than a price taker.
A price maker can influence the market price through its production
decisions, while a price taker must accept the prevailing market
price.
A price maker only sells at a fixed price, whereas a price taker can
negotiate prices.
, 10. Assume a production process using process costing starts with a certain
number of units in beginning inventory that are partially completed, a certain
number of units are started and completed during the period, and the
ending inventory at the end of the period is partially complete. How would
you determine the equivalent units of production in this situation for the
period?
You would add the work required to complete the units in beginning
inventory plus the degree of completion of the ending inventory
units.
You would add the work required to complete the units in beginning
inventory plus the number of units started and completed during the
period.
You would add the work required to complete the units in
beginning inventory to the number of units started and completed
during the period to the degree of completion of the ending
inventory units.
You would add the work required to start and complete the units
started during the period plus the degree of completion of the
ending inventory units.
11. Which of the following organizations would most likely use a process costing
system?
airplane manufacturer
automobile retailer
public accounting firm
gasoline refinery
12. If a company purchases $5,000 worth of raw materials on open account,
what would be the journal entry to reflect this transaction?
